• Journal of the Korea Safety Management & Science
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• v.15 no.1
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• pp.217-229
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• 2013

As customers' demands for diversified small-quantity products have been increased, there have been great efforts for a firm to respond to customers' demands flexibly and minimize the cost of inventory at the same time. To achieve that goal, in SCM perspective, many firms have tried to control the inventory efficiently. We present an mathematical model to determine the near optimal (s, S) policy of the supply chain, composed of multi suppliers, a warehouse and multi retailers. (s, S) policy is to order the quantity up to target inventory level when inventory level falls below the reorder point. But it is difficult to analyze inventory level because it is varied with stochastic demand of customers. To reflect stochastic demand of customers in our model, we do the analyses in the following order. First, the analysis of inventory in retailers is done at the mathematical model that we present. Then, the analysis of demand pattern in a warehouse is performed as the inventory of a warehouse is much effected by retailers' order. After that, the analysis of inventory in a warehouse is followed. Finally, the integrated mathematical model is presented. It is not easy to get the solution of the mathematical model, because it includes many stochastic factors. Thus, we get the solutions after the stochastic demand is approximated, then they are verified by the simulations.

• Water Engineering Research
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• v.5 no.2
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• pp.101-109
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• 2004

Aggregating information by combining forecasts from two or more forecasting methods is an alternative to using forecasts from just a single method to improve forecast accuracy. This paper describes the development and use of a monthly inflow forecast model based on an optimal linear combination (OLC) of forecasts derived from naive, persistence, and Ensemble Streamflow Prediction (ESP) forecasts. Using the cross-validation technique, the OLC model made 1-month ahead probabilistic forecasts for the Chungju multi-purpose dam inflows for 15 years. For most of the verification months, the skill associated with the OLC forecast was superior to those drawn from the individual forecast techniques. Therefore this study demonstrates that OLC can improve the accuracy of the ESP forecast, especially during the dry season. This study also examined the value of the OLC forecasts in reservoir operations. Stochastic Dynamic Programming (SDP) derived the optimal operating policy for the Chungju multi-purpose dam operation and the derived policy was simulated using the 15-year observed inflows. The simulation results showed the SDP model that updated its probability from the new OLC forecast provided more efficient operation decisions than the conventional SDP model.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.8 no.12
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• pp.4389-4410
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• 2014

Network coding is a promising technology that increases system throughput by reducing the number of packet transmissions from the source node to the destination node in a saturated traffic scenario. Nevertheless, some packets can suffer from end-to-end delay, because of a queuing delay in an intermediate node waiting for other packets to be encoded with exclusive or (XOR). In this paper, we analyze the delay according to packet arrival rate and propose two network coding schemes, iXOR (Intelligent XOR) and oXOR (Optimal XOR) with Markov Decision Process (MDP). They reduce the average delay, even under an unsaturated traffic load, through the Holding-${\chi}$ strategy. In particular, we are interested in the unsaturated network scenario. The unsaturated network is more practical because, in a real wireless network, nodes do not always have packets waiting to be sent. Through analysis and extensive simulations, we show that iXOR and oXOR are better than the Distributed Coordination Function (DCF) without XOR (the general forwarding scheme) and XOR with DCF with respect to average delay as well as delivery ratio.

• IE interfaces
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• v.8 no.2
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• pp.161-169
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• 1995

In this paper, a threshold policy is considered for the Markovian queueing system with server vacations. The threshold policy considered in this paper has the following form: "when the number of customers present in the system increases to N, the server is turned on and serves customers until the system becomes empty". In this paper, we show how the finite capacity or finite population queueing system under a threshold policy can be modeled by the stochastic Petri net. The performance evaluation of the model is carried out using the software called "SPNP". Some examples are also presented in which it is shown that how the optimal threshold policies can be obtained under a linear cost structure.

• Journal of Korea Water Resources Association
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• v.31 no.4
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• pp.407-413
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• 1998

This study reviewed the recent studies for the climate change impact on water resource systems and applied one of the techniques to a real reservoir system - the Skagit hydropower system in U.S.A. The technique assumed that the climate change results in ±5% change in monthly average and/or standard deviation of the observed inflows for the Skagit system. For each case of the altered average and standard deviation, an optimal operating policy was derived using s SDP(Stochastic Dynamic Programming) model and compared with the operating policy for the non-climate change case. The results showed that the oparating policy of the Skagit system is more sensitive to the change in the streamflow average than that in the streamflow standard deviation. The derived operating policies were also simulated using the synthetic streamflow scenarios and their average annual gains were compared as a performance index. To choose the best operating policy among the derived policies, a Bayesian decision strategy was also presented with an example. Keywords : climate change, reservoir operating policy, stochastic dynamic programming, Bayesian decision theory.

• Journal of Korean Institute of Industrial Engineers
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• v.38 no.2
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• pp.89-97
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• 2012

This paper considers a manufacturer with a two-station make-to-stock and make-to-order serial production system. The MTS facility produces a single type of component and provides components for the MTO facility that produces customized products. In addition to the internal demand from the MTO facility, the MTS facility faces demands from the spot market with the option of to accept or reject each incoming demand. This paper addresses a joint component inventory rationing and batch production control which maximizes the manufacturer's profit. Using the Markov decision process model, we investigate the structural properties of the optimal inventory rationing and batch production policy, and present two types of heuristics. We implement a numerical experiment to compare the performance of the optimal and heuristic policies and a simulation study to examine the impact of the stochastic process variability on the inventory rationing and batch production control.

• Journal of the Korean Operations Research and Management Science Society
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• v.26 no.3
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• pp.105-117
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• 2001

This paper models supply uncertainty in the dynamic Newsboy problem context. The system consists of one supplier and one retailer who places an order to the supplier every period to meet stochastic demand. Supply uncertainty is modeled as the uncertainty in quantities delivered by the supplier. That is, the supplier delivers exactly the amount ordered by the retailer with probability of $\beta$ and the amount minus K with probability of (1-$\beta$). We formulate the problem as a dynamic programming problem and prove that retailer’s optimal replenishment policy is a stationary base-stock policy. Through a numerical study, we found that the cost increase due to supply uncertainty is significant and that the costs increase more rapidly as supply uncertainty increases. We also identified the effects of various system parameters. One of the interesting results is that as retailer’s demand uncertainty, the other uncertainty in our model, increases, the cost increase due to supply uncertainty becomes less significant.

• Journal of the military operations research society of Korea
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• v.10 no.1
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• pp.23-39
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• 1984

Consider a failure model for a stochastic system. A shock is any perturbation to the system which causes a random amount of damage to the system. Any of the shocks can cause the system to fail at shock times. The amount of damage at each shock is a function of the sum of the magnitudes of damage caused from all previous shocks. The times between shocks form a sequence of independent and identically distributed random variables. The system must be replaced upon failure at some cost but it also can be replaced before failure at a lower cost. The long term expected cost per unit time criterion is used. Structural relationships of the optimal replacement policy under the appropriate regularity conditions will be developed. And these relationships will provide theoretical background for the algorithm development.

• Korean Management Science Review
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• v.29 no.1
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• pp.1-14
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• 2012

The goal of the multi-reservoir operation planning is to provide an optimal release plan that maximize the reservoir storage and hydropower generation while minimizing the spillages. However, the reservoir operation is difficult due to the uncertainty associated with inflows. In order to consider the uncertain inflows in the reservoir operating problem, we present a Stochastic Dynamic Programming (SDP) model based on the markov decision process (MDP). The objective of the model is to maximize the expected value of the system performance that is the weighted sum of all expected objective values. With the SDP model, multi-reservoir operating rule can be derived, and it also generates the steady state probabilities of reservoir storage and inflow as output. We applied the model to the Geum-river basin in Korea and could generate a multi-reservoir monthly operating plan that can consider the uncertainty of inflow.

• Earthquakes and Structures
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• v.5 no.4
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• pp.395-416
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• 2013

The magneto-rheological (MR) damper contributes to the new technology of structural vibration control. Its developments and applications have been paid significant attentions in earthquake engineering in recent years. Due to the shortages, however, inherent in deterministic control schemes where only several observed seismic accelerations are used as the trivial input and in classical stochastic optimal control theory with assumption of white noise process, the derived control policy cannot effectively accommodate the performance of randomly base-excited engineering structures. In this paper, the experimental and analytical studies on stochastic seismic response control of structures with specifically designed MR dampers are carried out. The random ground motion, as the base excitation posing upon the shaking table and the design load used for structural control system, is represented by the physically based stochastic ground motion model. Stochastic response analysis and reliability assessment of the tested structure are performed using the probability density evolution method and the theory of extreme value distribution. It is shown that the seismic response of the controlled structure with MR dampers gain a significant reduction compared with that of the uncontrolled structure, and the structural reliability is obviously strengthened as well.